Photo via Hedrick’s Chevrolet Facebook page.

As gas prices skyrocket in response to war and shipping complications, car dealers are stuck with the supply sent them by manufacturers. And while prices at the pump may send some looking for bigger miles-per-gallon numbers or avoiding the pump altogether with electric vehicles, their options are getting slimmer.

“We’ve never had a circumstance where we’ve had high gas prices with such supply constraints,” said Brian Maas, president of the California New Car Dealers Association.

Shipping constraints have not eased and the war in Ukraine has renewed material shortages manufacturers hoped were behind them.

On Feb. 2, General Motors said in an investor call that the worst of the chip shortage that was keeping cars at production facilities was over and that they planned to churn out more affordable vehicles.

By the end of that month, Russia had invaded Ukraine. Between 45%-54% of the world’s semiconductor-grade neon comes out of two Ukrainian companies that have halted production, according to Reuters.

A representative with General Motors said that the supply of semiconductors through the first quarter of the year has been more consistent than it was last year. That consistency has translated into gradual improvement in production and deliveries.

“However, there is still uncertainty and unpredictability in the semiconductor supply base, and we are actively working with our suppliers to mitigate potential issues moving forward,” said David Barnas with General Motors communications.

“A typical dealer having 200 vehicles on their lot, they might have 20 or less,” said Maas.

In the last gas crunch, dealers could reorder based on consumer preferences, and if they “guessed wrong,” says Maas, over a period of weeks or a couple months, they could phase in cars that people actually want.

“The hard part is there aren’t any vehicles of any kind,” Maas said.

A new car might take two to three months if a dealer already has that vehicle promised to them, said Brett Hedrick, owner and general manager of Hedrick’s Chevrolet. If someone wanted special features, that car might be produced in three months and take another three months to be delivered.

If they ordered it today, Tesla doesn’t expect customers to receive a Model S or Model X before 2023, according to Car and Driver.

The supply issues have Hedrick rethinking his business strategies. He’s only spending a fraction of what he used to on advertising. Considering the crunch on car availability, Hedrick says it almost feels like false advertising to tell people to come see the new Silverado truck when he only has one.

“Why do I spend money to bring people in when I don’t have anything to show them?” Hedrick said.

But Hedrick said most consumers understand the situation and now they have to wait. Even the rise well above the $5-a-gallon mark has yet to change anyone’s minds on the cars they ordered months ago.

Most people don’t expect gas prices to stay up more than six months. They may change their driving habits instead.

Higher sticker prices haven’t deterred people either.

At the end of February, the Bureau of Labor Statistics reported in its consumer price index that while new car prices had risen the slowest month-over-month in the past six months and used car prices had actually fallen, prices for both were up 12.4% and 41.2%, respectively, year-over-year.

Cars.com reported in a January survey of prospective car buyers that double-digit price growth had not changed the timelines of when they wanted to buy a car. They reported that many consumers had delayed their purchasing during their pandemic and now they were ready to begin buying. Hedrick echoed that same sentiment.

Hedrick has been bullish on used car buying, which he says is the only part of the business he feels he has any sort of control over.

His son has been going anywhere he can to buy used cars and they’ve been trying to keep 100 to 120 on the lot “and that seems to be going ok,” Hedrick said.

A lot of buyers are opting for used cars because of extended lead times.

Dealers Maas has spoken with are all experiencing the same problems. There are cars available, they just aren’t available in the choices or trim options consumers are used to. People will have to be patient or expand their search choices.

“Everyone goes where the customers are and if customers are demanding compact SUVs or crossovers, that’s where the market is going to be,” said Maas. “If because of gas prices things shift and people want to go back to buying Honda Civics and Corollas and other passenger sedans, then the market will adjust to that. It will take time, but they’ll adjust.”